E-rate/Schools and Libraries Program

For the first time in its history, the Universal Service Administrative Company (USAC) expanded beyond administering the four universal service programs: E-Rate, High Cost (Connect America Fund), Lifeline, and Rural Health Care. In 2021, USAC rose to the challenge and successfully administered four Federal Communications Commission initiatives, collectively known as the Congressional Response Programs.

Federal Communications Commission Chairwoman Rosenworcel sent letters to four House members on April 7, 2022, to respond to their letter on proposed changes to the E-rate competitive bidding process. Rosenworcel said the FCC has begun a rulemaking to consider improvements to the competitive bidding process. She also said funding has been made available to support students’ off-campus learning needs through the Emergency Connectivity Fund and the Emergency Broadband Benefit programs.

To receive E-Rate support, applicants must follow specific procedures established by the Federal Communications Commission and use an online portal called EPC. Applicants use the EPC system to notify vendors of Requests for Proposals (RFPs), report the results of their local competitive bidding process, and submit funding requests to USAC, the E‐rate program administrator. The purpose of this white paper is to provide data and applicant feedback about the performance of the current system.

The Federal Communications Commission's Wireline Competition Bureau announces the E-Rate and Rural Health Care (RHC) programs’ funding caps for funding year 2022. The new caps represent a 4.2% inflation-adjusted increase in each program cap from funding year 2021. The E-Rate program funding cap for funding year 2022 is $4,456,460,992. The new cap represents a 4.2% inflation-adjusted increase in the $4,276,833,965 cap from funding year 2021.

Zayo announced that it has entered into a definitive agreement to acquire Nashville-based Education Networks of America (ENA), a provider of managed network services to the education and public sector verticals. ENA targets K-12, higher education, healthcare, library, and government organizations with a variety of network services, specializing in E-Rate funded programs. E-Rate is a program funded through the Universal Service Fund, providing funding to school systems and libraries for connectivity and other technology. ENA has a national reach.

While the recent COVID-response programs are welcomed additions to the effort to connect all people, they are only one part of the total ecosystem required to achieve universal service. The Universal Service Fund continues to be an important part of that ecosystem. Specifically, the Lifeline program’s voice and data and voiceonly subsidies for consumers is not replicated elsewhere, and the Emergency Connectivity Fund program does not reach as far or cover as many needs as the E-rate program. One program does not serve all ends.

Free Press called on the Federal Communications Commission to reinvent its Universal Service Fund (USF) policies so that millions more people can afford the costs of connectivity in the United States. Free Press urged the FCC and Congress to redraft policies crafted in the late 1990s, and last overhauled more than a decade ago, to reflect the sector’s many changes. Free Press wrote, “the good intentions that fueled that effort are no longer a reliable blueprint in a fundamentally changed marketplace.

INCOMPAS is pressing the Federal Communications Commission to make the smart, transparent and expedient choice to save the Universal Service Fund. By evolving USF to include contributions from broadband internet access service providers, which the FCC could do immediately without an act of Congress, INCOMPAS says low-income families, schools and rural hospitals would all benefit from this renewed commitment to ongoing affordability solutions. INCOMPAS warns that the USF program is spiraling toward disaster, with contribution levels set to rise to nearly 40%.

The Federal Communications Commission announced that it is partnering with the Institute of Museum and Library Services to expand broadband connectivity to Tribal libraries. The agencies will team up to raise awareness about the E-Rate program among Tribal libraries and organizations, which can use program funds to increase broadband access to serve their communities. To kick off this partnership, the agencies recently reached out to all 574 Tribal leaders to provide information about the E-Rate program and opportunities for Tribal libraries to participate.

The Federal Communications Commission adopted an order updating rules in the E-Rate program to clarify that Tribal libraries can access funding to provide affordable internet access in their communities. The Order updates the definition of “library” in the E-Rate program rules to make clear that it includes Tribal libraries, resolving a longstanding issue that limited their access to affordable broadband connectivity through the program.